Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2016
FAIR VALUE OF FINANCIAL INSTRUMENTS [abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS
NOTE 6: FAIR VALUE OF FINANCIAL INSTRUMENTS
 
 
The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
Cash and cash equivalents: The carrying amounts reported in the consolidated balance sheets for interest bearing deposits and money market funds approximate their fair value because of the short maturity of these investments.
Restricted cash: The carrying amounts reported in the consolidated balance sheets for interest bearing deposits approximate their fair value because of the short maturity of these investments.
Borrowings: The book value has been adjusted to reflect the net presentation of deferred financing costs. The outstanding balance of the floating rate loans continues to approximate its fair value, excluding the effect of any deferred finance costs. The 2019 Notes, the 2022 Notes, the 2022 Logistics Senior Notes and the Navios Logistics loan are fixed rate borrowings and their fair value was determined based on quoted market prices.
Capital leases: The capital leases are fixed rate obligations and their carrying amounts approximate their fair value.
Loan receivable from affiliate companies: The carrying amount of the floating rate loan approximates its fair value.
Long-term payable to affiliate companies: The carrying amount of the long-term payable approximates its fair value.
Investments in available-for-sale securities: The carrying amount of the investments in available-for-sale securities reported in the consolidated balance sheets represents unrealized gains and losses on these securities, which are reflected directly in equity unless an unrealized loss is considered “other-than-temporary”, in which case it is transferred to the statements of comprehensive (loss)/income. As of June 30, 2016, investments in available-for-sale securities are presented under the caption “Prepaid expenses and other current assets”, as the Company sold the securities during the third quarter of 2016.
 
       The estimated fair values of the Company's financial instruments are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
June 30, 2016
 
 
December 31, 2015
 
 
  
Book Value
 
 
Fair Value
 
 
Book Value
 
 
Fair Value
 
Cash and cash equivalents
  
$
140,529
 
 
$
140,529
 
 
$
163,412
 
 
$
163,412
 
Restricted cash
  
$
2,671
 
 
$
2,671
 
 
$
13,480
 
 
$
13,480
 
Investments in available-for-sale-securities
  
$
5,303
 
 
$
5,303
 
 
$
5,173
 
 
$
5,173
 
Loan receivable from affiliate companies
  
$
21,827
 
 
$
21,827
 
 
$
16,474
 
 
$
16,474
 
Capital lease obligations, including current portion
  
$
(18,555
 ) 
 
$
(18,555
 ) 
 
$
(20,649
)
 
$
(20,649
)
Senior and ship mortgage notes, net
  
$
(1,352,860)
 
 
$
(692,238
 ) 
 
$
(1,350,941
)
 
$
(735,002
)
Long-term debt, including current portion
  
$
(276,036
 ) 
 
$
(279,476
 ) 
 
$
(230,367
)
 
$
(233,526
)
Long term payable to affiliate companies
  
$
(6,430
 ) 
 
$
(6,430
 ) 
 
$
—
 
 
$
—
 
 
 
The following tables set forth our assets that are measured at fair value on a recurring basis categorized by fair value hierarchy level. As required by the fair value guidance, assets are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement.
 
 
 
 
 
 
  
 
 
 
Fair Value Measurements as of June 30, 2016
Assets
  
Total
 
  
Quoted Prices in
Active Markets for
 Identical Assets
 (Level I)
 
  
Significant  Other
 Observable
 Inputs
 (Level II)
 
  
Significant
 Unobservable
 Inputs
 (Level III)
Investments in available-for-sale securities
  
$
5,303
  
  
$
5,303
  
  
$
—  
 
  
$ 
—  
Total
  
$
5,303
  
  
$
5,303
  
  
$
—  
 
  
$
—  
 
 
 
  
 
 
 
Fair Value Measurements as of December 31, 2015
Assets
  
Total
 
  
Quoted Prices in
Active Markets for
 Identical Assets
 (Level I)
 
  
Significant  Other
 Observable
 Inputs
 (Level II)
 
  
Significant
 Unobservable
 Inputs
 (Level III)
Investments in available-for-sale securities
  
$
5,173
  
  
$
5,173
  
  
$
—  
 
  
$ 
—  
Total
  
$
5,173
  
  
$
5,173
  
  
$
—  
 
  
$
—  
 
 
Fair Value Measurements
 
The estimated fair value of our financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows:
Level I: Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets that we have the ability to access. Valuation of these items does not entail a significant amount of judgment.
Level II: Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date.
Level III: Inputs that are unobservable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Fair Value Measurements at June 30, 2016
 
 
  
Total
 
 
(Level I)
 
 
(Level II)
 
 
(Level III)
 
Cash and cash equivalents
  
$
140,529
 
 
$
140,529
 
 
$
—  
 
 
$
—  
 
Restricted cash
  
$
2,671
 
 
$
2,671
 
 
$
—  
 
 
$
—  
 
Loan receivable from affiliate companies(2)
 
$
21,827
 
 
$
—  
 
 
$
21,827
 
 
$
—  
 
Capital lease obligations, including current portion(1)
  
$
(18,555
)
 
$
—  
 
 
$
(18,555
)
 
$
—  
 
Senior and ship mortgage notes
  
$
(692,238
)
 
$
(692,238
)
 
$
—  
 
 
$
—  
 
Long-term debt, including current portion(1)
  
$
(279,476
)
 
$
—  
 
 
$
(279,476
)
 
$
—  
 
Long term payable to affiliate companies (2)
 
$
(6,430
 ) 
 
$
         —
 
 
$
(6,430
 ) 
 
$
     —
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Fair Value Measurements at December 31, 2015
 
 
  
Total
 
 
(Level I)
 
 
(Level II)
 
 
(Level III)
 
Cash and cash equivalents
  
$
163,412
 
 
$
163,412
 
 
$
—  
 
 
$
—  
 
Restricted cash
  
$
13,480
 
 
$
13,480
 
 
$
—  
 
 
$
—  
 
Loan receivable from affiliate companies(2)
  
$
16,474
 
 
$
—  
 
 
$
16,474
 
 
$
—  
 
Capital lease obligations, including current portion(1)
  
$
(20,649
)
 
$
—  
 
 
$
(20,649
)
 
$
—  
 
Senior and ship mortgage notes
  
$
(735,002
)
 
$
(735,002
)
 
$
—  
 
 
$
—  
 
Long-term debt, including current portion(1)
  
$
(233,526
)
 
$
—  
 
 
$
(233,526
)
 
$
—  
 
 
(1
 )The fair value of the Company's long-term debt is estimated based on currently available debt with similar contract terms, interest rates and remaining maturities, published quoted market prices as well as taking into account the Company's creditworthiness.
(2
 )The fair value of the Company's loan receivable from affiliate companies and long-term payable to affiliate companies is estimated based on currently available debt with similar contract terms, interest rate and remaining maturities as well as taking into account the counterparty's creditworthiness.